CO537-3715 — Page 34

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Sec: File No: 1170/47s

SAVIN RAM

39

To the Secretary of State for the Colonies

From the Governor, Hong Kon..

Date 15th October, 1948

No:

87.

SECRET

Reptd: British Consul General,

CANTON (No: 63.)

>

British Embassy NANKIN ÷ (No: 47.) Comm. General, SINAPORE (No: 9.) *O,C., HONG KONG

Following is a political report for Hong Kong for

the two weeks ending 4th October, 1948.

In the middle of September reports were received suggesting that four prominent anti-L.M.. political leaders in Hor. Kop id scoretly disappeared and were believed to be on their way to Communist : Pons in North Ching to te part in the proposců Political Cacultative Council.hich is to discuss a coalition over ent. The four en were General

sai in -kei (K.M.. Rev.lutionary Coittco) Shon Chun-ju (Chairman of the China Democratic Logue), Chin, Po-chun (C.D.L.) and Tau Ping-shan (K..., R.C.). Subsequent enquiries showed that Ossi Tin-Kri went to Macao and on 4th October 1ort there on a junk for n unknown destination. It is not unlikely that he and the others have gone to North Ching. It is also rumoured that other prominent political dissidents are contemplating departure for the same destination. Marshr.1 Li Chei-sum professes ignorance about the matter, though he certainly knows the truth, since the four persons concerned are his close friends.

2.

The local Communists rencin quiet. However, on the North side of Mirs Bey coross the Hong Kon ̧ border Communist guerillas or bandits have again reoccupied Shoyuchung which they captured in July, but from which they were subsequently driven out by Nationlist troops. The Nationalists have now withdrawn. It is reported that Dr. T.V. Soon,'s efforts to pacify this part of Kwangtung are being thwarted by the opposition of military cliques and that the local military officers are constantly sabotaging his efforts at cleaning up the worst areas. There is much money to be made along the border by smugglin ctivities and the Chinese military forces succumb to temptation only too easily. No immediato trouble is, however, expected on the Hong Kong side as a result of the Communist occupation of Shayuchung.

3.

The hitch over the Customs Agreement was overcome on October 4th, when the Director-General of the Chinese Maritime Customs and the Colonial Secretary initialled a map showing the area in Deep Bay in which patrol by the Chinese Maritime Customs will be permitted. Enabling legislation will be submitted to the Hong Kong Legislative Council without delay. The initialling of the map was made an occasion for stressing Hong Kong's efforts to cooperate with China, and the Director-General mede r helpful and generous statement acknowledging this help. The patrol line in Decp Bey will be confirmed by an exchange of notes in Nanking, and it will be substituted for the line shown on the original map which was accepted by the British Embassy in Nanking in January last through a misunderstanding.

The new financial measures of cooperation with China instituted by the Hong Kong Government, in particular the notice issued on the 20th September to banks prohibiting

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